A Study On The Competitive Strategy Of The International Settlement Business Of Bank Of China Shandong Branch

As the unique domestic bank which has been operated for100years, Bank of China has its100years anniversary in2012. Benefit from the successful experience as the foreign exchange bank and the specialized foreign trade bank, international settelment and trade financing business is an edge of Bank of China, which is recognised as the most competitive financal product.In2011, the international settlement amount of Bank of China Shandong Branch exceeded$.90billion for the first time, achieved$92.2billion.Since the financial crisis in2008, the weak recovery of the world’s major economies, the U.S. debt,and the debt crisis in Europe are becoming increasingly fierce. All the above crisises have negative influence on Chinese economic growth which was supported by investment and exports in quite a long time. It is believed that Chinese import and export industry will have a tough time in2012.The competiton of international settlement business in domestic banking market has become more and more drastic. It brings out more problems and requirements for the further development of the internatioanl settlement business of Bank of China.This research will analyse the development of international settlement business of Bank of China Shandong Branch,and the author attempt to find its advantages in products, personnel structure,distribution network and brand effect by analyzing its market share of international settlement and trade financing businessHowever, Bank of China has become the super target of other commercial banks due to its traditional advantages in international settlement business. The state-owned banks as such as ICBC,ABC and CBC all take international settlement and trade financing business as its strategic business. Along with the development of Cross-border RMB business, supply chain financing, and other new types of trade financing products in China, and the development of Blue Economy and Yellow River Delta Economy create a new opportunity for the foreign trade industry of Shandong province. It is worth to discuss how to achieve new success in international settlement business for Bank of China.Nonetheless, weak client base, distribution network and loan-to-deposit ratio are recognised as the disadvantages of Bank of China compared with ICBC and other commercial banks. This adverse condition pushed Bank of China to speed up its innovation,change its management idea and re-conduct the strategic positioning. The author will use PEST analysis, five forces model, SWOT analysis and other methods, focus on the development status, problems,the strategic environment, as well as strategic analysis and specific implementation of the international settlement business of the Bank of China Shandong Branch.At present, with the great development of internationalization of RMB yuan, Shandong Province has become the second batch of cross-border RMB business pilot areas, how to repositioning international settlement and trade finance business and obtain a new development has become a new task.This research will discuss the further development of Bank of China as the traditional foreign exchange bank.The author will apply detailed data and cases to analyze the development of international settelemnt and trade financing business, especially on the products which can increase profits,deposits and cross-border RMB business.